Background:
What is now Ecuador formed part of the northern Inca Empire until the Spanish conquest in 1533. Quito became a seat of Spanish colonial government in 1563 and part of the Viceroyalty of New Granada in 1717. The territories of the Viceroyalty - New Granada (Colombia), Venezuela, and Quito - gained their independence between 1819 and 1822 and formed a federation known as Gran Colombia. When Quito withdrew in 1830, the traditional name was changed in favor of the "Republic of the Equator." Between 1904 and 1942, Ecuador lost territories in a series of conflicts with its neighbors. A border war with Peru that flared in 1995 was resolved in 1999. Although Ecuador marked 25 years of civilian governance in 2004, the period has been marred by political instability. Protests in Quito have contributed to the mid-term ouster of Ecuador's last three democratically elected Presidents. In 2007, a Constituent Assembly was elected to draft a new constitution; Ecuador's twentieth since gaining independence.

Political pressure groups and leaders:
Confederation of Indigenous Nationalities of Ecuador or CONAIE [Marlon SANTI, president]; Coordinator of Social Movements or CMS [F. Napoleon SANTOS]; Federation of Indigenous Evangelists of Ecuador or FEINE [Marco MURILLO, president]; National Federation of Indigenous Afro-Ecuatorianos and Peasants or FENOCIN [Pedro DE LA CRUZ, president]

Legislative branch:
unicameral National Congress or Congreso Nacional (100 seats; members are elected through a party-list proportional representation system to serve four-year terms) elections: last held 15 October 2006 (next to be held in October 2010) election results: percent of vote by party - NA; seats by party - PRIAN 28; PSP 24; PSC 13; ID 7; PRE 6; MUPP-NP 6; RED 5; UDC 5; other 6; note - defections by members of National Congress are commonplace, resulting in frequent changes in the numbers of seats held by the various parties; as of 29 November 2007, Congress is on indefinite recess while a Constituent Assembly is convened

Legal system:
based on civil law system; has not accepted compulsory ICJ jurisdiction

Flag description:
three horizontal bands of yellow (top, double width), blue, and red with the coat of arms superimposed at the center of the flag; similar to the flag of Colombia, which is shorter and does not bear a coat of arms

Independence:
24 May 1822 (from Spain)

Country name (Goverment):conventional long form: Republic of Ecuador conventional short form: Ecuador local long form: Republica del Ecuador local short form: Ecuador

Executive branch:chief of state: President Rafael CORREA Delgado (since 15 January 2007); Vice President Lenin MORENO Garces (since 15 January 2007); note - the president is both the chief of state and head of government head of government: President Rafael CORREA Delgado (since 15 January 2007); Vice President Lenin MORENO Garces (since 15 January 2007) cabinet: Cabinet appointed by the president elections: the president and vice president are elected on the same ticket by popular vote for a four-year term (may not serve consecutive terms); election last held 15 October 2006 with a runoff election on 26 November 2006 (next to be held in October 2010) election results: Rafael CORREA Delgado elected president; percent of vote - Rafael CORREA Delgado 56.7%; Alvaro NOBOA 43.3%

Judicial branch:
Supreme Court or Corte Suprema (according to the Constitution, new justices are elected by the full Supreme Court; in December 2004, however, Congress successfully replaced the entire court via a simple-majority resolution)

Economy - overview:
Ecuador is substantially dependent on its petroleum resources, which have accounted for more than half of the country's export earnings and one-fourth of public sector revenues in recent years. In 1999/2000, Ecuador suffered a severe economic crisis, with GDP contracted by more than 6%, with a significant increase in poverty. The banking system also collapsed, and Ecuador defaulted on its external debt later that year. In March 2000, Congress approved a series of structural reforms that also provided for the adoption of the US dollar as legal tender. Dollarization stabilized the economy, and positive growth returned in the years that followed, helped by high oil prices, remittances, and increased non-traditional exports. From 2002-06 the economy grew 5.5%, the highest five-year average in 25 years. The poverty rate declined but remained high at 38% in 2006. In 2006 the government imposed a windfall revenue tax on foreign oil companies, leading to the suspension of free trade negotiations with the US. These measures led to a drop in petroleum production in 2007. President Rafael CORREA raised the specter of debt default and followed through on those threats in December 2008. He also decreed a higher windfall revenue tax on private oil companies, then renegotiated their contracts to overcome the debilitating effect of the tax. This generated economic uncertainty; private investment has dropped and economic growth has slowed significantly.

Telephone system:general assessment: generally elementary but being expanded domestic: fixed-line services provided by three state-owned enterprises; plans to transfer the state-owned operators to private ownership have repeatedly failed; fixed-line density stands at about 13 per 100 persons; mobile cellular use has surged and has a subscribership of nearly 75 per 100 persons international: country code - 593; landing point for the PAN-AM submarine telecommunications cable that provides links to the west coast of South America, Panama, Colombia, Venezuela, and extending onward to Aruba and the US Virgin Islands in the Caribbean; satellite earth station - 1 Intelsat (Atlantic Ocean) (2007)

Disputes - international:
organized illegal narcotics operations in Colombia penetrate across Ecuador's shared border, which thousands of Colombians also cross to escape the violence in their home country

Refugees and internally displaced persons:refugees (country of origin): 11,526 (Colombia); note - UNHCR estimates as many as 250,000 Columbians are seeking asylum in Ecuador, many of whom do not register as refugees for fear of deportation (2007)

Illicit drugs:
significant transit country for cocaine originating in Colombia and Peru, with over half of the US-bound cocaine passing through Ecuadorian Pacific waters; importer of precursor chemicals used in production of illicit narcotics; attractive location for cash-placement by drug traffickers laundering money because of dollarization and weak anti-money-laundering regime; increased activity on the northern frontier by trafficking groups and Colombian insurgents

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Quiz #2

1. What famous canal was built at the narrowest point between the Atlantic and Pacific oceans?

Atlantic-Pacific Canal

Transcontinental Canal

Panama Canal

Erie Canal

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